You have identified two investment options and plan to start one of them at the beginning of next year. Assume your discount rate is 11 percent, each projected cash flow is received at the end of the year, and both options have a regular payback period of 3.00 years.

For each investment option, calculate the:

1. Amount of the initial cash outlay
2. Net present value (NPV)
3. Profitability Index
4. Internal Rate of Return (IRR).
5. Modified Internal Rate of Return (MIRR).

Year A B 0 Unknown Unknown 1 15,000 18,750 2 15,000 18,750 3 7,500 18,750 4 7,500 (18,750) 5 22,500 18,750 6 22,500 18,750